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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SisterMaryElephant who wrote (63366)	6/25/1999 2:49:00 PM
From: tejek	Respond to of 1571102

Steve: RE: " Wouldn't the burnoff of Vantis and re-negotiation of debt...." Yes just as the the intro of the k7 and the bringing online of the dresden fab will improve value. ted

To: SisterMaryElephant who wrote (63366)	6/25/1999 3:08:00 PM
From: Charles R	Respond to of 1571102

SK, <Is AMD's book value constant over time? Would'nt the "burn off" of Vantis and re-negotiation of debt lower the book value? Last I heard it was around $14, what will AMD's book value be a year from now?> I haven't looked closely at the numbers but AMD's book value will likely go up this quarter because of the valuation they got for Vantis (after netting out the loss and any other "one-time" expenses.) Where is will be next year is anyone's guess. Let's say they screwup and lose $100M per quarter in book value - at that rate, after a full year, the book value should go down by about $3 per share. If that happens, AMD will get out of the micro biz and all the analysts will upgrade AMD to "Strong Buy" because it is a communications play and push the stock to $25. There you go - a good 30% return for the year. ;-) Chuck